3.3 E – BUSINESS
In general, e-business is understood as the interaction among business partners with
the assistance of information technologies. It refers not only to buying and selling over
the internet, but also to servicing customers and collaborating with business partners.
The term e-business is often used interchangeably with the term e-commerce.
However, it is becoming increasingly accepted that the use of e-commerce should be
5
restricted to referring to just those transactions, which are used while buying and
selling services and goods over the internet. An e-business enterprise is one that
utilises the internet and related technologies to compete effectively in its business
space (Cronin, 1997).
All commercial or business transactions, interactions and trade with other businesses
that take place over the Internet fall under e-business. E-business includes ecommerce
and enhances the relationship between internal customers and external
customers/suppliers. According to Loewen (2001), e-business (ERP platform) is an
enterprise that uses the web to:
• Reach networks of suppliers
• Broadcast to customers
• Receive information on customers
• Receive revenue from internet transactions; and
• Provide services and products over the web
• Combine processes; organisational structure and technology
• Communicate information
• Leverage service and trade
According to Philips and Thomas (1997), for a very long time American Airlines used
its control of the SABRE reservation system (ERP) to achieve higher levels of capacity
utilisation than its competitors. Wal-Mart has exploited its EDI links with suppliers to
increase its inventory turn around drastically.
Nike has masterfully employed advertising, endorsement, and the micro segmentation
of its markets to transform sneakers into high price fashion goods. This is especially
relevant from the capture of ideas to the structure of data and the storage and
distribution of knowledge (Fraser, 1999). All three companies compete as much on
information as they do on their physical products or services. In many ways information
and the mechanisms for delivering it stabilise corporate and industry structures and
underlie competitive advantage.
3.3 E – BUSINESSIn general, e-business is understood as the interaction among business partners withthe assistance of information technologies. It refers not only to buying and selling overthe internet, but also to servicing customers and collaborating with business partners.The term e-business is often used interchangeably with the term e-commerce.However, it is becoming increasingly accepted that the use of e-commerce should be 5restricted to referring to just those transactions, which are used while buying andselling services and goods over the internet. An e-business enterprise is one thatutilises the internet and related technologies to compete effectively in its businessspace (Cronin, 1997).All commercial or business transactions, interactions and trade with other businessesthat take place over the Internet fall under e-business. E-business includes ecommerceand enhances the relationship between internal customers and externalcustomers/suppliers. According to Loewen (2001), e-business (ERP platform) is anenterprise that uses the web to:• Reach networks of suppliers• Broadcast to customers• Receive information on customers• Receive revenue from internet transactions; and• Provide services and products over the web• Combine processes; organisational structure and technology• Communicate information• Leverage service and tradeAccording to Philips and Thomas (1997), for a very long time American Airlines usedits control of the SABRE reservation system (ERP) to achieve higher levels of capacityutilisation than its competitors. Wal-Mart has exploited its EDI links with suppliers toincrease its inventory turn around drastically.Nike has masterfully employed advertising, endorsement, and the micro segmentationof its markets to transform sneakers into high price fashion goods. This is especiallyrelevant from the capture of ideas to the structure of data and the storage anddistribution of knowledge (Fraser, 1999). All three companies compete as much oninformation as they do on their physical products or services. In many ways informationand the mechanisms for delivering it stabilise corporate and industry structures andunderlie competitive advantage.
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